Considered here is an arms race in which weapons production exhibits increasing returns to scale technology that stems from the increasing importance of information, electronics, computers, software, etc. in modern weapons systems. Just as in general equilibrium theory, increasing returns to...

Treaties to limit strategic arms, such as those resulting from the Strategic Arms Limitation Talks (SALT), are generally viewed as resulting in a reduced level of military spending and an increased level of security for both countries. This paper shows that such treaties generally would...

At the present time, solar power is not a competitive fuel for supplying electricity to the grid in the United States. However, an economic model developed by the U.S. National Renewable Energy Laboratory (NREL) forecasts that solar power production costs could drop twenty percent every time...

We address the optimal timing of investment in gas pipelines when the demand for gas is stochastic. We will show that this is a problem that can be solved in theory, but the practical solution depends on functions and parameters that are either subjective or cannot be estimated. We will then...

This paper addresses the timing of optimal investment in LPG pipelines when the goal is to maximize consumer surplus less private cost and social of transporting LPG. The loss of consumer surplus is small. The important elements are the private cost of transporting LPG and the congestion created...